Mahindra & Mahindra, M&M to launch Vibe hatchback priced at Rs 6 lakh next month to take on Maruti Swift, Hyundai i20, Latest stock price

Mahindra & Mahindra, M&M to launch Vibe hatchback priced at Rs 6 lakh next month to take on Maruti Swift, Hyundai i20, Latest stock price



Mahindra & Mahindra will launch a hatchback on the Verito platform next month as the country's top utility vehicle maker looks to find a place in the Indian car market as well.

The new car, the Vibe, will be priced competitively with the diesel version at around `6 lakh, a person aware of the company's plans said. It will take on Maruti SuzukiBSE 0.39 % Swift, Hyundai i20 and Volkswagen Polo among others.

Pravin Shah, chief executive, automotive, at M&M, said, "The entry into the compact car segment gives us an opportunity to learn more about the Indian car market and expand the customer base."

The Verito Vibe will sport the same 1.5-litre Renault diesel engine that powers Verito and will be less than four metres in length to attract lower excise duty of 12%. Larger cars need to pay 24-27% excise.

The company sel ls around 1,500 Veritos per month. Industry experts say that by getting into the hatchback segment, M&M is trying to de-risk its utility vehicle business, which accounts for 45% of the firm's automotive sales, which includes pickups and commercial vehicles. M&M currently accounts for 47% the utility vehicle market in India.

During April-February 2013, M&M's car sales fell 12% to 14,133 cars while its UV sales rose 32% to 2.39 lakh units.

The new car has been completely developed, designed and styled by M&M engineers.

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